If a Jedi and Sith engage in a fight, they run a different method for awarding EXP based on your rank and your targets rank, The general EXP handler does not currently factor in ranks.

Bounty Hunters with Death Watch or Black Sun will gain more EXP for Hunting targets then in World PvP.

On Fight Clubbing, You will get 3 chances that are non disputable, if caught exploiting the ranking system your first warning removes all current rank, your second warning is a 3 day ban and all current rank removal and your final infraction is a permanent ban. You will get caught, So don't do it.